Market Update | Local Tips, Trends, Rants & Events | Chelsea Robinson | Encino and Sherman Oaks Real Estate Agent and Houses for Sale
For those of you who want to stay in the loop with the financial market, here we have broken down last week’s report to keep you updated on all things related. Contrary to the previous, in this one we have a rise in most fields, including the consumer prices for the month of August – raising the inflation levels – however the Fed reported that the situation isn’t something to be worried about, as it isn’t above their target level.

Stock market indexes hit record highs –  Markets closed the week at record highs as news that an outline of a tax reform plan would be released later this month. Recent compromise on other issues had investors feeling that tax cuts or tax reform could improve prospects for growth in the coming years.
The Dow Jones Industrial Average ended the week at 22,268.34, up from 21,797.79 last week. It’s up 12.7% year to date. The S&P 500 closed the week at 2,500.23, up from its close last week of 2,461.43.  The S&P is up 11.7% YTD. The NASDAQ closed the week  at 6,448.37, up from last week’s close of 6,360.19. It’s up 19.8% year to date.
Bond yields higher this week  – The 10-year Treasury bond closed the week at 2.20% up from 2.06% last week. The 30-year treasury yield ended the week at 2.77%, up from 2.67% last week. Mortgage rates follow treasury bond yields so we watch bond yields carefully.
Mortgage Rates unchanged last week – but higher by week’s end –  The September 14, 2017 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 3.78%, unchanged from 3.78% last week.  The 15 year fixed was 3.08%,  unchanged from 3.08% last week.  The 5-year ARM was 3.13% , down slightly from 3.15% last week. Rates rise at the end of the week and are now are slightly higher.
Consumer Prices rise in August

The Labor Department reported that its Consumer Price Index rose 0.4 percent in August after edging up just 0.1 percent in July. August’s gain was the largest in seven months and lifted the year-on-year increase in the CPI to 1.9 percent from 1.7 percent in July. Economists had forecast the CPI rising 0.3 percent in August and climbing 1.8 percent year-on-year. Gasoline prices surged 6.8% for consumers as refineries shut down due to hurricanes. This should just be a temporary spike and added to the CPI increase. The Core CPI which strips out volatile food and energy increased 0.2% in August. Year over year Core CPI has increased 1.7%. Inflation, while a little higher in August is still below the Fed’s target level.

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